The net profit in the first half of 2021 was 1.05 billion yuan, and the profitability was improved. The company achieved revenue of 5.27 billion yuan in the first half of 2021, + 36% year-on-year, mainly due to the increase in newly installed capacity and the increase in power generation of existing projects. The net profit was 1.05 billion yuan, + 56% compared with the same period last year. The net profit rate of sales was 21.4%, which was + 3.8pct compared with the same period last year. During the first half of 2021, the financial expense rate of the company was 10.5%, compared with the same period last year-1.23pct, the effect of cost control was significant, and the profitability was significantly improved.
Scenery accounted for steady growth, and the number of hours utilized in transportation projects increased significantly. In the first half of 2021, the company added wind power installed 173.9MW, which increased by 56.5% by the end of June compared with the same period last year. Photovoltaic installed 37.8MW increased by 22.6% by the end of June. The proportion of scenery has increased steadily, from 28.4% in 2017 to 55.2% in the first half of 2021. In the first half of 2021, wind power generation increased by 70.2 percent, photovoltaic power generation increased by 24.5 percent, and the company's cumulative power generation increased by 34.6 percent over the same period last year to 9.23 billion kilowatt hours. In addition, with the improvement of scenery resources, the number of hours utilized in transportation and power generation projects has increased significantly, promoting rapid performance growth.
The offshore wind power project is expected to reach production on schedule. Guangzhou Nuclear Power Group plans to add 6-7GW non-nuclear clean energy installation annually during the 14th five-year Plan period. Currently, it has the offshore wind power approval project 11.5GW, and it is expected that the group will increase the new energy installation scale at about 30-35GW during the 14th five-year Plan period. In accordance with the company's annual goal of adding sea breeze, land breeze and photovoltaic not lower than 1GW in 2021-2025, we combine the expected pace of industry installation and the resources held by the group. It is expected that by the end of 2025, the installed capacity of the company's equity will grow from 7.55GW to 15.85GW, and the installed capacity of new energy will grow from 4.1GW to 12.4GW.
Risk hints: domestic new energy power generation planning is not as expected during the 14th five-year Plan; domestic new energy construction consumption appears bottleneck; electricity price of new bidding projects is lower than expected; interest rate upward increases the company's financial costs.
Investment advice: maintain a "buy" rating
Maintaining the profit forecast, the estimated return net profit for 21-23 years is 18.97 million, 2.277, and the corresponding EPS is 0.44, 0.51, 0.53 yuan, and the reasonable valuation range is 5.40-6.00 yuan, equivalent to HK $6.51-7.23. The corresponding dynamic PB for 21-23 is 2.6, 2.2, 1.9, and PE12.9/11.1/10.6 times for 21-23, which is 50% 66% higher than the current stock price. Maintain a "buy" rating.